Revenue in the quarter was $645.8 million compared to $658.5 million in
the first quarter last year. Revenue, net of subcontractor costs1,
was $483.0 million compared to $497.2 million in the first quarter last
year. Operating income was $43.7 million, up 4.6% compared to $41.8
million in the first quarter last year. Diluted earnings per share (EPS)
were $0.42, up 2.4% compared to $0.41 in the first quarter last year.
Earnings before interest, taxes, depreciation, and amortization (EBITDA2),
were $59.4 million, up 9.9% compared to $54.1 million in the first
quarter last year. Backlog was $1.9 billion for the first quarter, up
slightly from the prior quarter. Cash generated from operations was
$41.7 million, up 135.0% compared to $17.8 million in the first quarter
last year.

The Board has authorized the amendment of the Company’s stock repurchase
program to revise the pricing grids and to commit $30 million of the
$100 million authorized buyback to be expended prior to the end of
Company’s fiscal year. The $30 million committed amount will offset the
Company’s share dilution from equity awards. It is the Board’s intent to
re-authorize a repurchase program which offsets annual dilution.

Tetra Tech’s Chairman and CEO, Dan Batrack commented, “We had a solid
first quarter, in line with our expectations. Work for oil & gas
clients, which grew organically over 20%, continues to be our strongest
market. In addition, the recently passed U.S. federal spending bill
provides more certainty for our government business outlook. Our focus
on water and the environment continues to differentiate us in the
marketplace. Cash generation has consistently exceeded net income,
enabling us to commit $30 million this year to offset dilution from
equity awards without impacting the Company’s M&A strategy.”

1 Tetra Tech’s revenue includes a significant amount of
subcontractor costs and, therefore, the Company believes revenue, net of
subcontractor costs, which is a non-GAAP financial measure, provides a
valuable perspective on its business results.

2 EBITDA is a non-GAAP financial measure. The Company
believes EBITDA is a useful representation of operating performance
because of significant amounts of acquisition-related non-cash
amortization expense. A table reconciling net income attributable to
Tetra Tech to EBITDA can be found at the end of this release.

Business Outlook

The following statements are based on current expectations. These
statements are forward-looking and the actual results could differ
materially. These statements do not include the potential impact of
transactions that may be completed or developments that become evident
after the date of this release. The Business Outlook section should be
read in conjunction with the information on forward-looking statements
at the end of this release.

Tetra Tech expects diluted EPS for the second quarter of fiscal 2014 to
be in the range of $0.37 to $0.42. Revenue, net of subcontractor costs,
for the second quarter is expected to range from $450 million to $500
million. Fiscal 2014 guidance remains unchanged. Diluted EPS is expected
to range from $1.60 to $1.80 and cash EPS3 is expected to
range from $2.30 to $2.60. Revenue, net of subcontractor costs, for
fiscal 2014 is expected to range from $2.1 billion to $2.3 billion.

In thousands (except EPS data)

Three Months Ended

December 29, 2013

December 30, 2012

Revenue

$

645,848

$

658,545

Subcontractor costs

(162,857

)

(161,347

)

Revenue, net of subcontractor costs

482,991

497,198

Operating income

43,718

41,809

Interest expense

(2,424

)

(1,185

)

Income tax expense

(13,967

)

(14,228

)

Net income including noncontrolling interests

27,327

26,396

Net income attributable to noncontrolling interests

(12

)

(172

)

Net income attributable to Tetra Tech

$

27,315

$

26,224

Earnings per share attributable to Tetra Tech:

Basic

$

0.43

$

0.41

Diluted

$

0.42

$

0.41

Weighted-average common shares outstanding:

Basic

64,227

63,864

Diluted

65,048

64,608

Webcast

Investors will have the opportunity to access a live audio-visual
webcast and supplemental financial information concerning the first
quarter results through a link posted on the Company’s website at www.tetratech.com
on January 30, 2014 at 8:00 a.m. (PST).

Tetra Tech is a leading provider of consulting, engineering, program
management, construction management, and technical services. The Company
supports government and commercial clients by providing innovative
solutions to complex problems focused on water, environment, energy,
infrastructure, and natural resources. With more than 14,000 staff
worldwide, Tetra Tech’s capabilities span the entire project life cycle.

Tetra Tech, Inc.

Regulation G Information

Reconciliation of Net Income to EBITDA

In thousands

Three Months Ended

December 29,

2013

December 30,

2012

Net income attributable to Tetra Tech

$

27,315

$

26,224

Interest expense

2,424

1,185

Income tax expense

13,967

14,228

Depreciation

7,129

6,808

Amortization

8,581

5,633

EBITDA

$

59,416

$

54,078

Forward-Looking Statements

This news release contains forward-looking statements that are
subject to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. These forward-looking statements include
information concerning future events and the future financial
performance of Tetra Tech that involve risks and uncertainties. Readers
are cautioned that these forward-looking statements are only predictions
and may differ materially from actual future events or results. Readers
are urged to read the documents filed by Tetra Tech with the SEC,
specifically the most recent reports on Form 10-K, 10-Q, and 8-K, each
as it may be amended from time to time, which identify risk factors that
could cause actual results to differ materially from the forward-looking
statements. Among the important factors or risks that could cause actual
results or events to differ materially from those in the forward-looking
statements in this release are:worldwide political and economic
uncertainties; fluctuations in annual revenue, expenses and operating
results; the cyclicality in demand for our overall services; the
cyclicality in demand for mining services; the cyclicality in demand for
oil and gas services; concentration of revenues from U.S. government
agencies and potential funding disruptions by these agencies; violations
of U.S. government contractor regulations; dependence on winning or
renewing U.S. government contracts; the delay or unavailability of
public funding on U.S. government contracts; the U.S. government’s right
to modify, delay, curtail or terminate contracts at its convenience;
credit risks associated with certain commercial clients; risks
associated with international operations; the failure to comply with
worldwide anti-bribery laws; the failure to comply with domestic and
international export laws; the failure to properly manage projects; the
loss of key personnel or the inability to attract and retain qualified
personnel; the use of estimates and assumptions in the preparation of
financial statements; the ability to maintain adequate workforce
utilization; the use of the percentage-of-completion method of
accounting; the inability to accurately estimate and control contract
costs; the failure to win or renew contracts with private and public
sector clients; acquisition strategy and integration risks; goodwill or
other intangible asset impairment; growth strategy management; backlog
cancellation and adjustments; the failure of partners to perform on
joint projects; the failure of subcontractors to satisfy their
obligations; requirements to pay liquidated damages based on contract
performance; changes in resource management, environmental or
infrastructure industry laws, regulations or programs; changes in
capital markets and the access to capital; credit agreement covenants;
industry competition; liability related to legal proceedings,
investigations and disputes; the availability of third-party insurance
coverage; the ability to obtain adequate bonding; the failure to
adequately recover on our claims for additional contract costs;
employee, agent or partner misconduct; employee risks related to
international travel; safety programs; conflict of interest issues;
liabilities relating to reports and opinions; liabilities relating to
environmental laws and regulations; force majeure events; protection of
intellectual property rights; the interruption of systems and
information technology; the ability to impede a business combination
based on Delaware law and charter documents; and stock price volatility.
Any projections in this release are based on limited information
currently available to Tetra Tech, which is subject to change. Although
any such projections and the factors influencing them will likely
change, Tetra Tech will not necessarily update the information, since
Tetra Tech will only provide guidance at certain points during the year.
Readers should not place undue reliance on forward-looking statements
since such information speaks only as of the date of this release.